Management Accounting Quiz

The major functions of management is (are):

• strategic management and long-range planning.

• planning and decision making.

• identifying threats and opportunities for the firm.

• all of the above.

The process of identifying, measuring, analyzing, interpreting, and communicating information in pursuit of an organization's goals is called

• managerial accounting

• financial accounting

• management

• promotional activities

Which of the following is included in the day-to-day work of the management team?

• decision making

• planning

• controlling

• all of the above

Paying rent, purchasing supplies, and purchasing inventory are which of the day-to-day work activities of the management team?

• decision making

• planning

• directing operational activities

• only A and B

Managerial accounting activity adds value to an organization by pursuing five major objectives, which include

• providing information for decision making and planning.

• measuring the performance of activities within an organization.

• assisting managers in directing and controlling operational activities.

• all of them

For internal uses, managers are more concerned with receiving information that is:

• completely objective and verifiable.

• completely accurate and precise.

• relevant, flexible, and immediately available.

• relevant, completely accurate, and precise.

Managerial accounting information:

• pertains to the entity as a whole and is highly aggregated.

• pertains to subunits of the entity and may be very detailed.

• is prepared only once a year.

• is constrained by the requirements of generally accepted accounting principles.

Managerial accounting differs from financial accounting in that it is

• more concerned with segments of a company.

• less constrained by rules and regulations.

• more concerned with the future.

• all of the above.

Which of the following statements correctly distinguishes financial and managerial accounting?

• managerial accounting reports on the whole organization

• financial accounting is oriented toward the future

• financial accounting is primarily concerned with providing information for internal users

• managerial accounting is oriented more toward the planning and control aspects of management

Management accountants would not

• assist in budget planning.

• prepare reports primarily for external users.

• determine cost behavior.

• be concerned with the impact of cost and volume on profits.